- Celsius is shutting down its app within 90 days.
- The company plans to provide creditors with significant recoveries in Bitcoin.
- The projected distribution amount is approximately $2.03 billion.
Celsius, the bankrupt pioneering crypto lending platform, recently released its revised disclosure statement, revealing its plan to shut down its app within 90 days. The move comes as part of the company’s broader efforts to streamline its operations, optimize distribution mechanics, and enhance the overall user experience.
Revised Disclosure Statement. Give me some time, but will add points here as I go through it…https://t.co/OGXlYKMhtg— Simon Dixon (@SimonDixonTwitt) August 9, 2023
In the statement, Celsius outlined its plans to provide creditors with significant recoveries in cryptocurrency. In particular, the company intends to distribute liquid cryptocurrency, including Bitcoin (BTC) and Ethereum (ETH), to eligible creditors. The projected distribution amount is approximately $2.03 billion, subject to potential fluctuations in BTC and ETH values.
Meanwhile, the decision to shut down the Celsius App after 90 days is driven by various factors, primarily the cost of maintaining the platform open for an extended period to process withdrawals.
To efficiently manage the process, Celsius has opted to work with third-party distribution agents. It identified PayPal (NASDAQ:PYPL) as a potential agent for certain distributions to individual creditors in the United States. For other distributions, Celsius is actively seeking additional distribution agents. If suitable agents cannot be found, Celsius will keep its platform open ninety days after the effective date to facilitate distributions to specific creditors.
The 90-day timeframe was chosen based on Celsius’ experience enabling cryptocurrency withdrawals for Custody and Withhold Account Holders. As the Celsius App winds down, users are urged to take action and download their transaction histories for personal records before the deactivation date. Once the app ceases to exist, users can no longer access their Celsius accounts or log into the platform.
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